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Malvern Bancorp (MLVF) in Paoli, Pa., expects to report another quarterly loss after selling a block of problem loans and repaying Federal Home Loan Bank advances.
October 15 -
The activist investor had vowed to wage a proxy battle next year against Malvern Bancorp unless it addressed concerns about shareholder value
October 16 -
Malvern Bancorp is being challenged by a pair of dissidents in a development that highlights investors' growing frustration with the banking industry's inability to put capital to work.
September 17 -
Two East Coast banks have shed their mutual holding company ownership.
October 12
Malvern Bancorp (MLVF) in Paoli, Pa., took an $18.8 million loss in the quarter that ended Sept. 30 after selling a batch of bad loans for a loss.
The $602 million-asset company earned $217,000 in the same period of 2012.
Malvern
Aside from these one-time losses, Malvern's net interest income fell 12%, to $5.4 million, as its net interest margin tightened by 8 basis points, to 2.54%. Its total loans receivable also dropped 12%, to $402 million. Malvern's provision for loan losses was $10 million, up from $450,000.
Malvern's income tax expense rose to $6.6 million, from $800,000 in the same period last year, as it recorded a $6.7 million reduction in its deferred tax allowance after it sold the batch of bad loans.
Noninterest income was flat, at $485,000, while noninterest expense jumped by 64%, to $6.6 million. The rise was due to the FHLB prepayments, higher real estate costs and an increase in employee compensation, the company said.
In October, Malvern
Pressure from Stilwell, who controls about 10% of Malvern's stock, and PL Capital, another activist investor with roughly the same stake, led Malvern to undergo a
